Calculate the WACC given the following information Debt: 9,000 bonds outstanding with a coupon rate of 7%, 1,000 par value and selling at 101, 20 years to maturity, semi-annual payments Common stock: 200,000 shares outstanding, selling for $80 a share with a beta of 1.5 Preferred: 20,000 shares outstanding, paying a $8 dividend with a price of $75 a share Assume a market risk premium of 7%, a risk-free rate of 4% and a tax rate of 21%

Multiple Choice

10.42%

12.5%

11.19%

9.8%

11.1%